Bank of England (BOE) Interest Rate Decision
The Bank of England (BOE) Interest Rate Decision is the decision made by the Bank of England’s Monetary Policy Committee (MPC) on the official interest rate. The MPC sets the official interest rate, also known as the Bank Rate, which is the rate at which the Bank of England lends money to other banks. The Bank Rate is the benchmark for all other interest rates in the UK, and is used to influence the cost of borrowing and the availability of credit.
History of the Bank of England Interest Rate Decision
The Bank of England was established in 1694 and has been setting the official interest rate since then. The Bank of England Act 1998 gave the Bank of England operational independence in setting the official interest rate. The Bank of England’s Monetary Policy Committee (MPC) is responsible for setting the official interest rate. The MPC is made up of nine members, including the Governor of the Bank of England, four external members appointed by the Chancellor of the Exchequer, and four internal members appointed by the Bank of England.
The MPC meets eight times a year to decide on the official interest rate. The decision is based on a range of economic data, including inflation, GDP growth, employment figures, and the performance of the housing market. The MPC’s decision is announced at 12:00 GMT on the day of the meeting, and the new rate comes into effect the following day.
Table of Comparisons
| Year | Interest Rate |
|---|---|
| 2020 | 0.1% |
| 2019 | 0.75% |
| 2018 | 0.5% |
| 2017 | 0.25% |
Summary
The Bank of England Interest Rate Decision is the decision made by the Bank of England’s Monetary Policy Committee (MPC) on the official interest rate. The MPC sets the official interest rate, which is the rate at which the Bank of England lends money to other banks. The Bank Rate is the benchmark for all other interest rates in the UK, and is used to influence the cost of borrowing and the availability of credit. The MPC meets eight times a year to decide on the official interest rate, and the decision is based on a range of economic data. For more information on the Bank of England Interest Rate Decision, visit the Bank of England website.
See Also
- Monetary Policy
- Inflation
- GDP Growth
- Employment Figures
- Housing Market
- Bank Rate
- Credit Availability
- Interest Rates
- Bank of England Act 1998
- Monetary Policy Committee (MPC)
